VAT FRAUD IN POLAND: LEGAL AND FINANCIAL IMPLICATIONS

Аннотация

Value-added tax (VAT) is the most popular type of turnover tax
worldwide and, in most countries, the most important source of budget
revenue. However, VAT fraud poses the most significant threat to
public finances. At its peak (2012–2015), the VAT gap for the EU
amounted to approximately EUR 152 billion, or 12.8% of potential
budget revenues from this tax (VAT Total Tax Liability – VTTL). In
Poland these values amounted to PLN 41 billion and 24.7%,
respectively.
The study presents the legal structure of VAT fraud, the financial scale
of this phenomenon and the remedial actions that Poland has been
taking for over 10 years, including tightening criminal liability for
issuing and utilizing false invoices.
Employing doctrinal and statistical methods, the study aims to compare
the scale of VAT fraud in Poland with the European Union (EU)
average. Research indicates that prior to 2016, legislative loopholes and
inefficient tax administration resulted in a VAT fraud level in Poland
significantly exceeding the EU average. Conversely, since 2016,
enhanced legislation and improved tax authorities have reduced VAT
fraud below the EU average, with the digitization of tax settlements
playing a crucial role.